Gett lays off staffers as it combines with Juno

The other shoe is dropping in Gett's purchase of rival ride-hail operator Juno.

Tel Aviv, Israel–based Gett, which acquired Juno in April in an all-stock deal worth $200 million, is laying off 68 workers as it closes offices on West 35th Street in Manhattan and on Northern Boulevard in Long Island City, according to a notice from the state Department of Labor. The layoffs will take place in September.

Among the benefits for Gett of the deal with Juno was acquiring Juno's operations team, which is based in New York, and its technologists, who are based in Israel.

"As a natural next step in the integration with Juno, we are combining our local operations in the United States to form a leader in the NYC ride-hailing market," a Gett spokeswoman said in a statement. "As is typical with mergers, some roles become redundant as we combine two teams into one. Employees who are let go will receive 90 days' full pay and benefits, vested equity and outplacement assistance."

Both Juno and Gett have become targets of a lawsuit recently filed in federal court charging false advertising and securities fraud. Drivers who worked for Juno said they were given restricted stock units, which ended up being worth next to nothing, in return for working for and promoting the company in its competition with Uber. They were paid out less than 2 cents per share when the stock plan was terminated as part of the acquisition by Gett.

Juno has said that it will fight the allegations in court. Gett did not respond to requests for comment.

Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.